WageWorks accounting restatements in-line with disclosures, says William Blair
WageWorks' accounting restatements were in-line with prior disclosures, and management plans to file its 2018 annual report by Q1 and its quarterly report within the normal timeframe for the first quarter, William Blair analyst Robert Napoli tells investors in a research note. Further, management provided medium-term growth rate objectives that were generally in line with expectations, adds the analyst. He views the 2019 guidance as mixed relative to expectations, since revenue was better but margins were lower. Napoli continues to believe that WageWorks remains a leader in the "secularly attractive" market of administering consumer benefits and is "uniquely" positioned to benefit from the secular shift toward consumer directed healthcare. He keeps an Outperform rating on the shares.